A UK asset manager is hoovering up New Zealand solar and battery assets, as it jumps on the country’s newest energy opportunity.
Foresight Group, which owns 34 operating and under-development wind, solar and battery projects in Australia, has bought NZ Clean Energy.
The Kiwi developer comes with three projects in particular that Foresight is keen on, within a larger pipeline of 15 projects totalling more than 2 gigawatts (GW).
Foresight expects solar and battery projects in Masterton (89 megawatts (MW), Darfield (106 MW) and Dannevirke (72 MW) to cost about $A500 million to build with construction starting from this year.
The company has a “green energy infrastructure” pipeline of 5 GW across the UK, Europe, Australia and now New Zealand.
The move on a pure-play solar and battery developer in New Zealand, a nation which cut its renewables teeth on hydro, geothermal and wind power many years ago, should be no surprise to anyone watching the country’s project connection pipeline.
The March connection pipeline update by grid owner and operator Transpower shows solar and batteries are dominating every stage of the process with 99 currently somewhere in the connection process.
Solar backed by batteries have become a useful balance for New Zealand’s reliance on hydro, which in drought years is problematic.
According to RenewMap, there are only six solar and battery projects operating in New Zealand but 102 under development, eight under construction and one, the Glenbrook battery, currently commissioning.
In total, the country has almost 17 GW of solar and battery projects operating or under way.
“We established NZCE with the ambition of building a serious pipeline of solar and storage projects across New Zealand,” NZCE chief Harry Simpson said in a statement.
“Partnering with Foresight allows us to move into the next stage and take advanced projects into construction while continuing to expand the platform.”
Foresight believes New Zealand’s electricity market is entering a period of “significant structural change” on the back of rising electricity demand that is currently not being met.
“New Zealand has an exceptional renewable resource base and a supportive policy environment,” Foresight executive director Daniel Beaver said in a statement.
“We are well positioned to accelerate the delivery of new renewable energy capacity.”
Foresight says New Zealand’s electricity demand is set to grow by 25 per cent in the next 10 years, from 40 terawatt hours (TWh) now to around 50 TWh, thanks to New Zealand’s early adoption of electric vehicles as well as the electrification of industry on the back of gas shortages.
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Rachel Williamson
Rachel Williamson is a science and business journalist, who focuses on climate change-related health and environmental issues.
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